1
        UNITED STATES SECURITIES AND
            EXCHANGE COMMISSION
         WASHINGTON, D. C.  20549
               FORM 10-Q
(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
     OF THE SECURITIES  EXCHANGE ACT OF 1934
     For the quarterly period ended September 30, 2000
                         OR
[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
      OF THE SECURITIES EXCHANGE ACT OF 1934
      For the transition period from _______________ to
      _______________

      Commission file number 1-4169

             TEXAS GAS TRANSMISSION CORPORATION
    (Exact name of registrant as specified in its charter)

           Delaware                        61-0405152
     (State or other jurisdiction of     (I.R.S. Employer
     incorporation or organization)      Identification No.)


 3800 Frederica Street, Owensboro, Kentucky    42301
  (Address of principal executive offices)   (Zip Code)

 Registrant's telephone number, including area code:
                     (270) 926-8686


Indicate by check mark whether the registrant (1)
has filed  all reports  required  to be filed by
Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required
to file  such  reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes  X    No_

Indicate the number of shares outstanding of each of
the issuer's classes  of  common  stock,  as of the
latest  practicable  date. 1,000 shares as of November 13,
2000

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTIONS H(1)(a)  and (b) OF FORM 10-Q AND IS
THEREFORE FILING  THIS  FORM WITH THE REDUCED
DISCLOSURE FORMAT.

               TEXAS GAS TRANSMISSION CORPORATION

                        TABLE OF CONTENTS





                                                                     Page
                      Part I.  Financial Information

Item 1. Financial Statements

        Consolidated Balance Sheets...............................     3

        Consolidated Statements of Income.........................     5

        Consolidated Statements of Cash Flows.....................     6

        Condensed Notes to Consolidated Financial Statements......     7

Item 2.Management's Narrative Analysis of the Results of Operations.  12


             Part II.  Other Information

Item 6. Exhibits and Reports on Form 8-K..........................    14

Signature.........................................................    15



Certain  matters  discussed in this report, excluding historical information,
include forward-looking statements.  Although  Texas Gas Transmission Corpora-
tion  believes  such   forward-looking statements are based on reasonable
assumptions, no assurance  can be  given that every objective will be
achieved.  Such statements are  made  in reliance on the "safe harbor"
protections  provided under  the Private Securities Reform Act of  1995.
Additional information about issues that could lead to material changes in
performance  is contained in Texas Gas Transmission Corporation's 1999 Annual
Report on Form 10-K and 2000 First and Second Quarter Reports on Form 10-Q.
<PAGE>
           PART I - FINANCIAL INFORMATION


Item 1. Financial Statements

               TEXAS GAS TRANSMISSION CORPORATION

                   CONSOLIDATED BALANCE SHEETS
                     (Thousands of Dollars)
                         (Unaudited)
<TABLE>
<CAPTION>

                                            September 30,   December 31,
ASSETS                                          2000            1999
<S>                                         <C>            <C>
Current Assets:
  Cash and cash equivalents                  $        232   $      266
  Receivables:
    Trade                                           1,830        7,011
    Affiliates                                      1,750        1,056
    Other                                             911          219
  Gas Receivables:
    Transportation and exchange                     3,884        1,300
    Storage                                         8,713           93
  Advances to affiliates                           48,241       73,765
  Inventories                                      15,673       15,627
  Deferred income taxes                             7,647       10,992
  Costs recoverable from customers                 12,160       13,714
  Gas stored underground                            5,600       10,409
  Other                                               471        1,483
    Total current assets                          107,112      135,935

Investments, at cost                                  213          367

Property, Plant and Equipment, at cost:
   Natural gas transmission plant                 983,349      960,208
   Other natural gas plant                        152,792      149,602
                                                1,136,141    1,109,810
Less - Accumulated depreciation and
   amortization                                   151,686      146,245
     Property, plant and equipment, net           984,455      963,565

Other Assets:
   Gas stored underground                          75,017      110,961
   Costs recoverable from customers                46,991       48,482
   Prepaid Pension                                 30,535       27,733
   Other                                            9,278       10,661
     Total other assets                           161,821      197,837

   Total Assets                               $ 1,253,601   $1,297,704
</TABLE>
 The accompanying condensed notes are an integral part of these consolidated
                financial statements.
<PAGE>
               TEXAS GAS TRANSMISSION CORPORATION

                   CONSOLIDATED BALANCE SHEETS
                     (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>


                                              September 30,    December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY               2000            1999
<S>                                            <C>           <C>
Current Liabilities:
   Payables:
     Trade                                      $     2,167   $     3,160
     Affiliates                                       6,029        10,071
     Other                                            5,430         5,633
   Gas Payables:
     Transportation and exchange                      4,099        15,387
     Storage                                          6,367        13,453
   Accrued taxes                                     33,081        21,964
   Accrued interest                                   1,511         6,557
   Accrued payroll and employee benefits             35,367        37,734
   Reserve for regulatory and rate matters               36           -
   Other accrued liabilities                          6,770        11,661
     Total current liabilities                      100,857       125,620

Long-Term Debt                                      250,618       250,860

Other Liabilities and Deferred Credits:
   Deferred income taxes                            161,998       168,824
   Postretirement benefits other than pensions       36,449        38,505
   Pension Plan Costs                                30,535        27,733
   Other                                             26,065        24,522
     Total other liabilities and deferred credits   255,047       259,584

Contingent Liabilities and Commitments                 -              -

Stockholder's Equity:
   Common stock, $1.00 par value, 1,000 shares
     authorized, issued and outstanding                   1             1
   Premium on capital stock and other paid-in
     capital                                        627,046       627,046
   Retained earnings                                 20,032        34,593
     Total stockholder's equity                     647,079       661,640

     Total Liabilities and Stockholder's Equity $ 1,253,601    $ 1,297,704

</TABLE>

The accompanying condensed notes are an integral part of these consolidated
financial statements.
<PAGE>
               TEXAS GAS TRANSMISSION CORPORATION

                CONSOLIDATED STATEMENTS OF INCOME
                     (Thousands of Dollars)
                        (Unaudited)
<TABLE>


                                   Three Months Ended     Nine Months Ended
                                     September 30,          September 30,
                                   2000         1999      2000        1999
<S>                                 <C>       <C>        <C>       <C>
Operating Revenues:
  Gas transportation                 $ 44,580  $ 51,371   $177,576  $189,674
  Gas storage                             595       652      1,876     1,921
  Other                                 1,128       379      3,860     1,148
   Total operating revenues            46,303    52,402    183,312   192,743

Operating Costs and Expenses:
  Cost of gas transportation            1,633       684      3,639     4,488
  Operation and maintenance            12,390    10,543     35,973    33,690
  General and administrative           11,832    12,812     37,941    39,207
  Depreciation and amortization        11,123    10,931     33,644    33,068
  Taxes other than income taxes         3,336     4,326     10,981    11,869
   Total operating costs and expenses  40,314    39,296    122,178   122,322

Operating Income                        5,989    13,106     61,134    70,421

Other (Income) Deductions:
  Interest expense                      4,816     5,060     14,736    14,893
  Interest income                      (1,230)     (887)    (4,365)   (2,881)
  Miscellaneous other (income), net      (454)     (359)      (422)     (367)
    Total other deductions              3,132     3,814      9,949    11,645

Income Before Income Taxes              2,857     9,292     51,185    58,776

Provision for Income Taxes                927     3,429     19,746    23,132

Net Income                           $  1,930  $  5,863   $ 31,439  $ 35,644

</TABLE>
 The accompanying condensed notes are an integral part of these consolidated
       financial statements.
<PAGE>

               TEXAS GAS TRANSMISSION CORPORATION
              CONSOLIDATED STATEMENT OF CASH FLOWS
                    (Thousands of Dollars)
                           (Unaudited)
<TABLE>
<CAPTION>

                                            Nine Months Ended September 30,
                                                    2000            1999
<S>                                             <C>            <C>
OPERATING ACTIVITIES:
  Net income                                     $  31,439      $  35,644
  Adjustments to reconcile to cash provided
   from operations:
     Depreciation and amortization                  33,644         33,068
     Provision for deferred income taxes            (3,481)         8,087
     Changes in receivables sold                   (10,200)        (6,900)
     Changes in receivables                          3,471         11,097
     Changes in inventories                            (46)           130
     Changes in other current assets                 7,375         (2,062)
     Changes in payables                             3,985         (3,736)
     Changes in accrued liabilities                (24,806)       (26,083)
     Other, including changes in noncurrent assets
       and liabilities                              27,049        (11,983)
         Net cash provided by operating activities  68,430         37,262

FINANCING ACTIVITIES:
  Dividends and returns of capital                 (46,000)       (24,000)
         Net cash used in financing activities     (46,000)       (24,000)

INVESTING ACTIVITIES:
  Property, plant and equipment:
   Capital expenditures, net of allowance for
     funds used during construction                (46,566)       (43,669)
   Costs of removal, net of proceeds from sales
     and salvage values                             (1,594)        (1,515)
  Advances to affiliates, net                       25,524         31,771
  Proceeds from sale of long-term investments          172            -
         Net cash (used in) investing activities   (22,464)       (13,413)

Decrease in cash and cash equivalents                  (34)          (151)

Cash and cash equivalents at beginning of period       266            201

Cash and cash equivalents at end of period        $    232       $     50

</TABLE>

The accompanying condensed notes are an integral part of these consolidated
financial statements.
<PAGE>
              TEXAS GAS TRANSMISSION CORPORATION
      CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (Unaudited)


A. Corporate Structure and Control and Basis of Presentation

Corporate Structure and Control

   Texas  Gas  Transmission Corporation and its wholly owned subsidiary,
TGT Enterprises, Inc., (collectively, Texas Gas) are wholly owned by Williams
Gas Pipeline Company (WGP), which is a wholly owned subsidiary of The
Williams Companies, Inc. (Williams).

Basis of Presentation

   The consolidated financial statements have been prepared from the  books
and  records  of Texas Gas without  audit.  Certain information and footnote
disclosures normally included in consolidated financial statements prepared
in accordance with generally  accepted accounting principles have been
condensed or omitted.  The  accompanying unaudited  consolidated  financial
statements include all adjustments, both normal recurring  and others, which,
in the opinion of Texas  Gas' management, are necessary to present fairly its
financial position at September 30, 2000, and results of operations for the
three and nine months ended  September 30, 2000 and 1999, and cash flows for
the  nine months  ended  September 30, 2000 and 1999.   These  consolidated
financial  statements should be read  in  conjunction  with  the financial
statements,  notes thereto and management's narrative analysis contained in
Texas Gas' 1999 Annual Report on Form  10-K and  Texas Gas' 2000 First and
Second Quarter Reports on Form 10Q.

   Certain reclassifications have been made in the 1999 financial statements
to conform to the 2000 presentation.

Seasonal Variation

   Operating income may vary by quarter.  Based on current rate structure,
Texas Gas experiences higher operating income in the first and fourth quarters
as compared to the second  and  third quarters.

B.  Contingent Liabilities and Commitments

Regulatory and Rate Matters and Related Litigation

   FERC Order 637

  On February 9, 2000, the FERC issued a final rule, Order 637, in which FERC
adopted certain policies that it finds are necessary to adjust its current
regulatory model to the needs  of the evolving markets, but determined that
any fundamental changes to its regulatory policy will be considered after
further study and evaluation of the evolving marketplace. Most significantly,
<PAGE>
in Order 637, the FERC (i) revised its pricing policy to waive, for two-year
period, the maximum price ceilings for short-term releases of capacity ofless
than one year,  and  (ii)  permits pipelines to file proposals to implement
seasonal rates for short-term  services and term-differentiated rates, subject
to  certain requirements including the requirement that a pipeline be limited
to  recovering its annual revenue requirement under those  rates. Texas Gas
submitted an Order 637 compliance filing on August 15, 2000,  which contained
pro forma tariff sheets designed to comply with  certain  directives in the
order regarding the  conduct  of daily business transactions.

   FERC Order 636

   Effective  November  1,  1993,  Texas  Gas restructured  its business to
implement the provisions of FERC Order 636,  which, among other things,
required pipelines to unbundle their merchant role  from their transportation
services. FERC Order  636  also provides  that  pipelines should be allowed
the  opportunity  to recover all prudently incurred transition costs which,
for  Texas Gas,  are primarily related to gas supply realignment (GSR)
costs and  unrecovered  purchased gas costs. Certain aspects  of  Texas Gas'
FERC Order 636 restructuring are under appeal.

   In  September  1995, Texas Gas received FERC approval  of  a settlement
agreement which resolves all issues  regarding  Texas Gas' recovery of GSR
costs.  To date, Texas Gas has  paid  $76.2 million and collected $66.4
million, plus interest,  related to GSR costs.  Texas Gas expects to pay no
more than $80 million for GSR  costs,  primarily as a result of contract
terminations,  and has  provided  reserves for the remaining GSR  costs it
may  be required to pay, as well as a regulatory asset for the estimated
future amounts recoverable.

   General Rate Issues

   On April 28, 2000, Texas Gas filed a general rate case (Docket No. RP00-
260) which became effective November 1, 2000, subject to refund. This new
rate case reflects a requested annual  revenue increase  of approximately $81
million, based on filed  rates, primarily  attributable to increases in the
utility  rate  base, depreciation  expense, rate of return and related taxes,
and revised system rate design quantities.  Texas Gas also proposes in this
new rate  case  to  implement value-based, term-differentiated seasonal rates
for short-term services  effective November  1, 2000, as permitted by FERC
Order 637.   On May 31, 2000, the Commission issued its "Order Accepting and
Suspending Tariff  Sheets Subject to Refund, Rejecting Other Tariff  Sheets,
and   Establishing  Hearing  and Settlement  Procedures" which permitted the
filing to take effect November 1, 2000, subject  to refund, and established
administrative procedures for the case.  Although the case was set for
hearing, the hearing was  held  in abeyance pending the filing of additional
information related to the  value-based rate proposal for short-term firm
transportation service.   Texas Gas made that supplemental filing on June 30,
2000. On October 27, 2000 the Commission issued an order on that supplemental
filing referring all issues in the case for hearing. Texas  Gas  has  begun
informal settlement negotiations  under  a procedural schedule to attempt to
resolve all issues  without  a formal hearing.

<PAGE>

   Royalty Claims and Producer Litigation

   In connection with Texas  Gas' renegotiations of supply contracts with
producers to resolve take-or-pay and other contract claims, Texas Gas has
entered into certain settlements which  may require the indemnification by
Texas Gas of certain claims for royalties which a producer may be required
to pay as a result  of such settlements.  Texas Gas has been made  aware of
demands  on  producers for additional royalties and may receive other demands
which could result in claims against Texas Gas pursuant to the
indemnification provision in its  settlements. Indemnification for royalties
will depend on, among other things, the specific lease provisions between
the producer and the lessor and the  terms of the settlement between the
producer and Texas Gas.

   In June 1999, Texas Gas filed to recover approximately  $1.3 million (75%)
of such costs pursuant to the provisions of FERC Order 528. These costs were
collected over a twelve-month period,  which ended June 30, 2000. Texas Gas
has provided reserves for the estimated settlement costs of other royalty
claims and litigation.

   Environmental Matters

   As of September 30, 2000, Texas Gas had a reserve  of approximately  $1.4
million for estimated costs associated  with environmental  assessment and
remediation, including  remediation associated with the historical use of
polychlorinated  biphenyls and  hydrocarbons.   This  estimate  depends  upon  a
number  of assumptions  concerning  the scope of remediation that  will be
required  at certain locations and the cost of remedial measures to be
undertaken. Texas  Gas is continuing to conduct environmental  assessments
and  is  implementing a variety  of remedial  measures that may result in
increases or  decreases  in the total estimated costs.

     Texas  Gas  currently  is  either  named  as  a potentially responsible
party  or  has  received  an information request regarding  its  potential
involvement at  certain Superfund  and state  waste disposal sites.  The
anticipated remediation  costs, if  any,  associated with these sites have
been included  in  the reserve discussed above.

    Texas Gas is also subject to the federal Clean Air Act (CAA) and the CAA
Amendments  of  1990  (Amendments)  which added significant provisions to the
existing federal CAA.  The Amendments require the Environmental Protection
Agency  (EPA)  to promulgate new  regulations pertaining to mobile sources,
air toxics, areas of ozone non-attainment, and acid rain. Texas Gas operates
facilities in some areas designated  as  non-attainment for the current ozone
standard and is aware that the EPA may designate additional non-attainment
areas during 2000 which may potentially impact Texas  Gas operations. Emission
control modifications of compression equipment located at facilities required
to  comply  with current federal CAA  provisions,  the Amendments, and State
Implementation Plans for NOx reductions are estimated to cost in the range of
$6 million to $14  million by May 2003 and will be recorded as additions to
property, plant and equipment  as  the  facilities are  added.  If EPA
designates additional new non-attainment areas in 2000 which  impact  Texas
Gas'  operations,  the cost of additions to property, plant and equipment is
expected to increase; however, Texas Gas is  unable at this time to estimate
with any certainty the cost of additions that  may  be required.  Moreover,
new regulations pertaining to Hazardous Air Pollutants (HAPs) are anticipated
to be promulgated by year-end 2000 which will require emission controls in
<PAGE>
addition to the controls mentioned above.  Texas Gas cannot predict
the costs with any certainty at this time resulting from the installation of
these controls.  The effective compliance  date for the HAPs regulations and
installation of associated controls is anticipated to be November 2003.

   Texas Gas considers environmental assessment, remediation costs, and costs
associated with compliance with  environmental standards  to be recoverable
through rates, as they  are  prudent costs incurred in the ordinary course of
business. The  actual costs  incurred will depend on the actual amount and
extent  of contamination discovered, the final cleanup standards mandated by
the EPA or other governmental authorities, and other factors.

   Other Legal Issues
   In  1998,  the  United States Department of Justice informed Williams that
Jack Grynberg, an individual, had filed claims in the United  States District
Court for the District of Colorado under the False Claims Act against
Williams and certain  of its wholly owned subsidiaries including Texas Gas.
Mr. Grynberg has also filed  claims against approximately 300  other  energy
companies  and  alleges that the defendants  violated the False Claims  Act
in connection with the measurement and  purchase  of hydrocarbons. The relief
sought is an  unspecified  amount  of royalties allegedly not paid to the
federal government,  treble damages,  a civil penalty, attorneys' fees, and
costs.  On  April 9,  1999, the United States Department of Justice announced
that it  was  declining  to intervene in any of the Grynberg  qui  tam cases,
including the actions filed against the Williams entities in the United
States District Court for the District of Colorado. On  October  21,  1999,
the Panel on Multi-District Litigation transferred all of the Grynberg qui tam
cases, including the ones filed  against Williams, to the United States
District Court  for the  District of  Wyoming for pre-trial  purposes.
Motions  to dismiss  the  complaints, filed by various defendants including
Williams, are pending.

   Summary of Contingent Liabilities and Commitments

   While  no assurances may be given, Texas Gas does not believe that the
ultimate resolution of the foregoing matters taken as  a whole,  based  on
advice from counsel and after consideration  of amounts  accrued,  insurance
coverage,  potential recovery  from customers  or  other indemnification
arrangements,  will  have  a materially   adverse effect  on  Texas  Gas'
future   financial position, results of operations or cash flow requirements.

C.   Adoption of Accounting Standard

   The FASB issued Interpretation No. 44, "Accounting for Certain
Transactions Involving Stock Compensation."  This interpretation modifies
the current practice of accounting for  certain  stock award agreements and
was generally effective beginning  July  1, 2000. The  initial impact of this
interpretation on Texas  Gas' results of operations and financial position
was not material.

   In June 1998, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards  (SFAS)  133, "Accounting  for
Derivative Instruments and Hedging  Activities." In June  1999,  the  FASB
issued SFAS 137,  which deferred  the effective  date of SFAS 133.  This was
followed in June  2000  by the  issuance  of  SFAS 138, "Accounting for
<PAGE>
Certain  Derivative Instruments and Certain Hedging Activities," which
amends  SFAS 133.   SFAS  133  and  138  establish  accounting and  reporting
standards  for  derivative financial instruments.  The standards require that
all derivative financial instruments be recorded on the balance sheet at
their fair value.  Changes in the fair value of derivatives will be recorded
each period in earnings if  the derivative  is not a hedge.  If a derivative
is a hedge,  changes in the fair value of the derivative will either be
recognized in earnings  along with the change in the fair value of the hedged
asset, liability or firm commitment also recognized in earnings or recognized
in other comprehensive income until the hedged item is recognized in
earnings.  For a derivative recognized in other comprehensive income, the
ineffective portion of the derivative's change  in fair value will be
recognized immediately in earnings. Texas Gas will adopt these standards
effective January 1, 2001.

   Based on Texas Gas' implementation efforts to date and the fair value of
its identified derivative positions existing at September 30, 2000, Texas Gas
does not expect that the impact of adopting the standards will be material to
its financial position or results of operations.  However, changing market
prices and the possibility of entering into new derivative positions in the
fourth quarter of 2000 and the fact that Texas Gas continues to pursue its
implementation efforts, causes the impact to Texas Gas' financial position or
results of operations to remain uncertain.
<PAGE>
Item  2. Management's Narrative Analysis of the Results of Operations
         (Filed Pursuant to General Instruction H)

                Financial Analysis of Operations
         Nine Months Ended September 30, 2000 Compared to
               Nine Months Ended September 30, 1999

   Operating income was $9.3 million lower for the nine months ended
September 30, 2000, than for the nine months ended September 30, 1999.
The decrease in operating income  was  due primarily  to $7.4 million from
the 1999 settlement of regulatory and rate issues, the 1999 recognition
of $3.0 million of deferred revenues associated with a January 1999 GSR
reconciliation filing with the FERC, and $1.9 million of one-time costs
associated with the  2000  office consolidation of Williams Gas Pipeline
Central and  Texas  Gas.   Decreases in operating income  were  partially
offset by a $2.7 million increase in other revenues primarily due to
higher  processing  revenues  resulting  from  higher energy prices. Interest
income  increased  due primarily to higher advances to affiliates, throughout
most of  2000,  and  higher interest rates.

   Operating revenues decreased $9.4 million primarily attributable to the
1999 regulatory settlement and GSR adjustment discussed above. Other revenues
increased by  $2.7  million  as discussed above. Total deliveries were 531.8
Tbtu and 558.0 Tbtu for the nine months of 2000 and 1999, respectively.

   Operating costs and expenses decreased $0.1 million primarily attributable
to a $0.8 million reduction in  the  cost  of  gas transportation and lower
administrative costs resulting from  the synergies of combining Texas Gas'
office operations with Williams Gas  Pipeline Central. Decreases in operating
costs and expenses were   partially  offset by  $1.9  million  of  one-time
office operation consolidation costs.

          Financial Condition and Liquidity

   Texas Gas is a participant with other Williams' subsidiaries in a $700
million credit agreement under which Texas Gas may borrow up to $200 million,
subject to borrowings by other affiliated companies. Interest rates vary with
current market conditions. To  date, Texas Gas has no amounts outstanding
under  this facility.

   As of September 30, 2000, Texas Gas has $100 million of shelf availability
remaining under a Registration Statement filed  with the Securities and
Exchange Commission in 1997.

   Texas Gas is a participant in WGP's cash management  program. The advances
due  Texas Gas by WGP are  represented by demand notes.  The interest rate on
intercompany demand notes  is  the London Interbank Offered Rate on the first
day of the month  plus an applicable margin based on the current Standard and
Poor's Rating of Texas Gas.

   Texas Gas expects to access public and private capital markets, as needed,
to finance its own capital requirements.
<PAGE>
   Texas Gas' capital expenditures for the first nine months of 2000 and 1999
were $48.2 million and $45.2 million, respectively. Capital  expenditures
for 2000 are expected to approximate  $89.0 million.

   Texas Gas' debt as a percentage of total capitalization at September  30,
2000 and December 31, 1999 was 27.9% and 27.5%, respectively.

   On April 28, 2000, Texas Gas filed a general rate case (Docket No. RP00-
260) which became effective November 1, 2000 subject to refund. This new rate
case reflects a requested annual  revenue increase of approximately $81
million, based  on  filed rates, primarily  attributable to increases in the
utility  rate  base, depreciation  expense, rate of return and related taxes,
and revised  system rate design quantities.  Texas Gas also  proposes in
this new rate case to implement  value-based, term- differentiated seasonal
rates for short-term services  effective November  1, 2000, as permitted
by FERC Order 637.   On  May  31, 2000,  the Commission issued its "Order
Accepting and Suspending Tariff  Sheets Subject to Refund, Rejecting Other
Tariff Sheets, and Establishing a Hearing and Settlement  Procedures" which
permitted the filing to take effect November 1, 2000, subject  to refund,
and established administrative procedures for the case. Although the case was
set for hearing, the hearing was  held  in abeyance pending the filing of
additional information related  to the  value-based rate proposal for short-
term firm transportation service. Texas Gas made that supplemental filing on
June  30, 2000.  On October 27, 2000 the Commission issued an order on that
supplemental filing referring all issues in the case for hearing. Texas Gas
has begun informal settlement negotiations  under  a procedural  schedule to
attempt to resolve all issues  without  a formal hearing.

<PAGE>

PART II - OTHER INFORMATION



Item 6. Exhibits and Reports on Form 8-K

        (a) Exhibits

            * 27.1 Financial Data Schedule for Texas Gas Transmission
                   Corporation for the nine months ending September 30, 2000.


        (b) Reports on Form 8-K

            None
        _____________________________

        *  Filed herewith


<PAGE>

                  S I G N A T U R E


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                       TEXAS GAS TRANSMISSIONCORPORATION

DATE:  November   13,   2000        BY:       /s/ S. W. Harris
                                                S. W. Harris
                                    Controller and Chief Accounting Officer